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RE: Relative Utility Approach

in #economics3 years ago

I find this interesting as it ties to some thoughts I have relating to economics' relationship to psychology. Specifically, I see economics as a branch of psychology.

Furthermore, I see very limited potential to economics' predictive capacity, except for when it's merely directly measuring something, say like a food thermometer stuck into a chicken breast: it's not so much a prediction as a reading. And as you say "data regarding preferences is still required" - basically you're taking people's preferences as input and then outputting a graph, but people's preferences might change and you can't predict that with economics, but you might be able to do so with some more overarching psychological approach or theory regarding human nature or specific aspects of it.

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Economics crosses over into many other fields. Psychology being a big overlap when we look at behavioural economics.

Economics often relies on historical data or past behaviour to predict the future. This is problematic as circumstances, preferences, and environments change. It might be possible to establish patterns of behaviour to predict future behaviour. This is very difficult to do on a larger scale.

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